Consider the case of Sutherland Corp.:

Sutherland Corp. is evaluating a proposed capital budgeting project that will require an initial investment of $140,000. The project is expected to generate the following net cash flows:

Year	Cash Flow
Year 1	$40,600
Year 2	$51,000
Year 3	$46,500
Year 4	$44,400

Assume the desired rate of return on a project of this type is 9%. What is the net present value of this project? (Note: Do not round your intermediate calculations.)

$15,732.70

-$13,065.40

$7,244.50

-$7,534.00

Suppose Sutherland Corp. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Sutherland Corp. accept or reject this project?

Accept the project

Reject the project